ECONOMIC IMPACTS of the The October 18, 2011 Martin Associates Lancaster, PA GREA T LAKE S - ST. LAWRENCE SEAWA Y SYST EM EXECUTIVE SUMMARY
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ECONOMIC IMPACTS of the
The
October 18, 2011
Martin Associates Lancaster, PA
GREAT LAKES - ST. LAWRENCE SEAWAY SYSTEM
EXECUTIVE SUMMARY
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2 The Economic Impacts of the Great Lakes-St. Lawrence Seaway System
INTRODUCTION
From the earliest days of European settlement, theGreat Lakes and St. Lawrence River have beenutilized as a means of transportation. Great Lakescities were founded as trading posts along a vastmarine highway that facilitated commerce in an era
pre-dating railroads and highways. This relationshipto the water has enabled the region to thrive andtoday, the Great Lakes-St. Lawrence region is theindustrial and agricultural heartland of both theUnited States and Canada.
Over the last 200 years, navigation improvements inboth the United States and Canada have enhancedthe waterway. The Welland Canal has connected LakeOntario and Lake Erie, enabling vessels to bypassNiagara Falls. The Soo Locks have made the St. Mary’s
River navigable, connecting Lake Superior withLake Huron. The St. Lawrence Seaway has tamedthe St. Lawrence River, enabling ships to sail fromLake Ontario to the Atlantic Ocean.
The resulting deep draft navigation system is thelongest in the world, extending 3,700 kilometers(2,300 miles) into the North American heartland.This waterway complements the region’s rail andhighway network and offers customers a cost-effective, safe and environmentally smart means ofmoving raw materials, agricultural commodities and
manufactured products. Every year more than160 million metric tons of cargo is moved on theGreat Lakes-St. Lawrence Seaway System. Dominantcargoes include iron ore for steel production, coalfor power generation, limestone and cement forconstruction, and grain for both domesticconsumption and export.
Three distinct vessel-operator communities serve thewaterway. These include U.S. domestic carriers(“U.S. Lakers”) transporting cargo between ports onthe system, Canadian domestic carriers (“CanadianLakers”) operating between ports on the system, andocean-going vessel operators (“Salties”), which operatebetween system ports and overseas destinations.
These carriers serve more than 110 system portslocated in each of the eight Great Lakes states andthe provinces of Ontario and Quebec.
In addition to locks, ships and ports, a host ofmaritime service providers work to ensure the safeand efficient transport of cargo. These includestevedores, warehousemen, freight forwarders,dockworkers, crane operators, vessel agents,dredging contractors, marine pilots, truck drivers,tugboat operators and shipyard workers.
PURPOSE
This report is designed to provide the navigationcommunity, transportation planners, governmentpolicy makers and the general public with a realisticassessment of the contributions made by the GreatLakes-Seaway system to the state, provincial,regional and national economies. This is the first-everstudy that measures the economic impacts of theGreat Lakes-Seaway system to both nations, at the
same time, using the same methodology.
EXECUTIVE SUMMARY
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Executive Summary 3
To accomplish this goal, a bi-national consortium ofpublic and private sector Great Lakes-Seaway systemstakeholders retained Martin Associates of Lancaster,Pennsylvania — a global leader in transportationeconomic analysis and strategic planning. MartinAssociates completed Great Lakes-Seaway systemeconomic impact studies on U.S.-specific data in
1992, 1995 and 2000, and has completed more than250 economic impact studies for ports and portsystems throughout the U.S., Canada, SouthAmerica, Europe, and Asia.
METHODOLOGY
This analysis estimates the combined U.S. andCanadian economic impacts of all marine cargomoving on the bi-national Great Lakes-Seawaysystem, including domestic cargo moving between
U.S. ports; domestic cargo moving between Canadianports; cross-lake cargo moving between the U.S. andCanada; and international cargo moving betweensystem ports and overseas ports.
Specifically, the study measures the impacts of 2010cargo movements at 32 U.S. and Canadian GreatLakes-Seaway system ports. The analysis wasdeveloped from a comprehensive telephone interviewprogram of more than 900 individual firms providingmaritime services at these ports. Models were then
developed to expand the 32-port impacts to the state-wide and province-wide levels. It is important to notethat the direct impacts generated at the 32 individualports accounted for 71 percent of the total system-wide impacts. The 16 Canadian ports accounted for75 percent of the total estimated Canadian impacts,while the 16 U.S. ports accounted for 66 percent ofthe total estimated U.S. impacts.
This analysis measures the impacts of cargo“handled” at Great Lakes-Seaway system ports.
“Handled” refers to both the shipping (exporting) ofthe cargo from a system port, and to the receipt(importing) of that cargo in a system port. Becauseeconomic activity is created every time cargo ishandled, for the purposes of this study, cargo movedbetween ports within the system has been handledtwice. By contrast, cargo moved between system
ports and overseas ports has been handled once (inthe region). For example, one ton of cargo moved toor from Europe is counted as one ton handled by aGreat Lakes-Seaway system port, while one ton ofcargo moved from Duluth, Minn., to Cleveland, Ohio,is counted as two tons (one ton exported in Duluthand one ton imported in Cleveland). For 2010, the
322 million metric tons of cargo identified as“handled” is based on approximately 164 millionmetric tons of cargo “moved.”
It is also important to note that the study does notaddress the economic impacts derived frominternational traffic originating from or destined forthose ports and terminals on the St. Lawrence Rivereast of and including Montreal. For example, theeconomic benefits of container movements to andfrom the Port of Montreal to overseas markets are
not included in this analysis, as this trade does notenter or leave the Great Lakes-Seaway system.However, grain export shipments leaving the Port ofDuluth, Minn., destined for overseas markets that aretemporarily off-loaded at the Port of Sept-Iles,Quebec for re-loading onto a larger ocean-goingvessel, are included.
Impacts are presented at the regional level, countrylevel, state/provincial level, by commodity, by carrierflag, by employment sector and by waterway segment.
Throughout the study, all values are expressed inboth U.S. and Canadian dollars (using a 2010 averageexchange rate of 1.03).
In order to ensure defensibility and accuracy, the studymethodology and results of the analysis have been peerreviewed by leading U.S. and Canadian economistsin academia and private industry. The peer reviewprocess was jointly managed by the U.S. Departmentof Transportation and Transport Canada.
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4 The Economic Impacts of the Great Lakes-St. Lawrence Seaway System
CATEGORIES OF IMPACTS
Employment: These impacts consist of four levels:
• Direct Employment – jobs directly generated bymaritime and port activity. Direct jobs include thoseof dockworkers, crane operators, ships’ crew,steamship agents, freight forwarders and stevedores,
as well as workers with railroad and truckingcompanies moving the cargo handled at systemports. These jobs would experience dislocation ifthe activity at ports and marine terminals were tobe discontinued.
• Induced Employment – jobs created when individualsspend their wages locally on goods and servicessuch as food, housing and clothing.
• Indirect Employment – jobs created due topurchases of goods and services by businesses.
These include jobs with office supply firms,maintenance and repair companies, parts andequipment suppliers, etc.
• Related User Employment – jobs with firms usingthe port to ship and receive cargo. While the facilitiesand services provided at the ports and marineterminals are a crucial part of the infrastructureallowing these jobs to exist, these jobs would notnecessarily be immediately displaced if marineactivity were to cease. For this reason, relateduser impacts are a separate non-additive
employment category.
Personal Income: These impacts are a measure ofthe employee wages and salaries (excluding benefits)received by individuals directly employed due toport activity.
Business Revenue: These impacts represent therevenue generated by firms providing services at
each port.Local Purchases: These impacts include the value ofgoods and services purchased by the firms providingservices at each port. Examples are office supplies,communications, utilities, fuel, maintenance and repair,goods/parts, contracted services, insurance, etc.
Taxes: These impacts include payments to federal,state/provincial, and local governments bycompanies and individuals whose jobs are directlydependent on port activity.
RESULTS
In 2010, 322.1 million metric tons of cargo werehandled by all U.S. and Canadian ports and marineterminals on the Great Lakes-Seaway system.The movement of this cargo generated the followingeconomic impacts:
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5
System-wide Impacts (Chapter II)
Employment – Maritime commerce on the Great Lakes-Seaway system in 2010 generated 226,833 U.S. andCanadian jobs, including 92,923 direct jobs . As aresult of local and regional purchases made by those92,923 individuals, an additional 66,005 induced jobs
were supported in the regional economy. Finally,67,905 indirect jobs were supported by US$6.4 billion(Cdn$6.6 billion) in regional purchases by businessessupplying services at the marine terminals and ports.
Personal Income – Maritime activity in 2010supported US$14.1 billion (Cdn$14.5 billion) intotal personal wage and salary income and localconsumption expenditures in the regional economiesof the U.S. and Canada. The 92,923 direct job holdersreceived US$4.4 billion (Cdn$4.5 billion) in wageincome; this equates to an average annual salary ofUS$47,000 (Cdn$48,400).
Business Revenue – As a result of maritime activityon the Great Lakes-Seaway system, US$33.6 billion(Cdn$34.6 billion) in business revenue was receivedby firms supplying cargo handling and vesselservices, and inland transportation services. Thisamount of revenue is split almost evenly between theUnited States and Canada.
Local Purchases – Businesses involved in maritimeactivity in the Great Lakes-Seaway system spentUS$6.4 billion (Cdn$6.6 billion) on purchases intheir respective local economies.
Taxes – A total of US$4.6 billion (Cdn$4.7 billion)in federal, state/provincial and local tax revenuewas generated by maritime activity on the GreatLakes-Seaway system in 2010.
Executive Summary
Exhibit II-2 Total System Impacts by Country
Canada United States Total
Jobs
Direct Jobs 48,288 44,634 92,923
Induced 21,947 44,057 66,005
Indirect 28,320 39,585 67,905
Total 98,556 128,227 226,833
Personal Income (1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $Direct $2,310,209 $2,379,515 $2,052,776 $2,114,360 $4,362,985 $4,493,875
Re-Spending/ Local Consumption $878,987 $905,357 $5,974,194 $6,153,420 $6,853,182 $7,058,777
Indirect $1,274,072 $1,312,294 $1,623,988 $1,672,707 $2,898,060 $2,985,002
Total $4,463,268 $4,597,166 $9,650,959 $9,940,487 $14,114,227 $14,537,654
Business Revenue(1,000) $15,425,317 $15,888,076 $18,135,715 $18,679,787 $33,561,032 $34,567,863
Local Purchases(1,000) $3,373,601 $3,474,809 $3,040,143 $3,131,347 $6,413,744 $6,606,156
State/Provincial andLocal Taxes (1,000) $584,966 $602,515 $945,668 $974,038 $1,530,634 $1,576,553
Federal Taxes (1,000) $1,315,681 $1,355,151 $1,737,173 $1,789,288 $3,052,853 $3,144,439
Note: Totals may not add due to rounding
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6 The Economic Impacts of the Great Lakes-St. Lawrence Seaway System
Exhibit II-9 continued
Minnesota Illinois WisconsinTonnage (1,000) 30,160 7,219 33,241
Jobs
Direct Jobs 2,516 2,813 3,466
Induced 2,258 2,521 3,071
Indirect 1,496 1,842 2,240
Total 6,271 7,177 8,777
Personal Income (1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $Direct $115,464 $118,928 $121,942 $125,600 $163,789 $168,703
Re-Spending/ Local Consumption $263,731 $271,643 $384,763 $396,306 $367,057 $378,069
Indirect $60,381 $62,193 $87,490 $90,115 $91,566 $94,313
Total $439,576 $452,763 $594,196 $612,022 $622,412 $641,085
Business Revenue (1,000) $1,343,705 $1,384,016 $438,795 $451,959 $1,405,293 $1,447,451
Local Purchases (1,000) $114,433 $117,866 $152,694 $157,275 $175,955 $181,234
State and Local Taxes (1,000) $46,815 $48,219 $59,420 $61,202 $67,073 $69,085
Federal Taxes (1,000) $79,124 $81,497 $106,955 $110,164 $112,034 $115,395
Exhibit II-9 Economic Impacts by State — Cargo Moving via U.S. Ports and Marine Terminals on the Great Lakes-St. Lawrence Seaway System
Indiana Ohio MichiganTonnage (1,000) 28,360 40,222 61,302
Jobs
Direct Jobs 15,516 8,504 10,603
Induced 17,852 9,222 8,061
Indirect 14,964 10,355 8,155
Total 48,332 28,081 26,819
Personal Income (1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $
Direct $726,283 $748,072 $378,968 $390,337 $484,116 $498,640
Re-Spending/ Local Consumption $2,468,927 $2,542,995 $1,278,750 $1,317,113 $1,058,956 $1,090,725
Indirect $587,445 $605,069 $436,985 $450,094 $334,688 $344,728
Total $3,782,656 $3,896,135 $2,094,703 $2,157,544 $1,877,761 $1,934,093
Business Revenue (1,000) $7,894,646 $8,131,486 $3,032,330 $3,123,300 $3,799,899 $3,913,896
Local Purchases (1,000) $1,133,209 $1,167,206 $772,802 $795,986 $637,553 $656,680
State and Local Taxes (1,000) $359,352 $370,133 $203,186 $209,282 $182,143 $187,607
Federal Taxes (1,000) $680,878 $701,304 $377,047 $388,358 $337,997 $348,137
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Executive Summary 7
Exhibit II-9 continued
New York Pennsylvania Total USTonnage (1,000) 2,216 605 203,325
Jobs
Direct Jobs 924 291 44,634
Induced 763 310 44,057
Indirect 280 252 39,585
Total 1,967 854 128,277
Personal Income (1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $
Direct $49,646 $51,136 $12,568 $12,945 $2,052,776 $2,114,360
Re-Spending/ Local Consumption $109,291 $112,570 $42,718 $43,999 $5,974,194 $6,153,420
Indirect $14,770 $15,213 $10,662 $10,982 $1,623,988 $1,672,707
Total $173,708 $178,919 $65,948 $67,926 $9,650,959 $9,940,487
Business Revenue (1,000) $167,397 $172,419 $53,650 $55,260 $18,135,715 $18,679,787
Local Purchases (1,000) $34,070 $35,092 $19,426 $20,009 $3,040,143 $3,131,347
State and Local Taxes (1,000) $21,019 $21,649 $6,661 $6,861 $945,668 $974,038
Federal Taxes (1,000) $31,267 $32,205 $11,871 $12,227 $1,737,173 $1,789,288
Exhibit II-10 Economic Impacts by Province — Cargo Moving via Canadian Ports and Marine Terminals on the Great Lakes-St. Lawrence Seaway System
Ontario Quebec TotalTonnage (1,000) 62,293 56,511 118,804
Jobs
Direct Jobs 28,894 19,394 48,288
Induced 12,743 9,205 21,947Indirect 21,906 6,414 28,320
Total 63,542 35,013 98,556
Personal Income (1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $
Direct $1,288,019 $1,326,659 $1,022,190 $1,052,856 $2,310,209 $2,379,515
Re-Spending/ Local Consumption $515,208 $530,664 $363,780 $374,693 $878,987 $905,357
Indirect $940,245 $968,452 $333,827 $343,842 $1,274,072 $1,312,294
Total $2,743,471 $2,825,775 $1,719,797 $1,771,391 $4,463,268 $4,597,166
Business Revenue (1,000) $9,360,290 $9,641,098 $6,065,027 $6,246,978 $15,425,317 $15,888,076
Local Purchases (1,000) $2,419,844 $2,492,439 $953,757 $982,370 $3,373,601 $3,474,809
Provincial Taxes (1,000) $236,076 $243,158 $348,890 $359,357 $584,966 $602,515Federal Taxes (1,000) $908,089 $935,332 $407,592 $419,820 $1,315,681 $1,355,151
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8 The Economic Impacts of the Great Lakes-St. Lawrence Seaway System
Impacts by Flag of Carriage (Chapter III)
Three distinct vessel operator communities serve theGreat Lakes-Seaway system. U.S. flag operators arethose companies whose vessels are documentedunder the laws of the United States; generally, thesecarriers operate between U.S. ports within the Great
Lakes. Canadian flag operators are those companieswhose vessels are documented under Canadian law.These carriers generally operate between lowerSt. Lawrence River ports and Great Lakes ports,carrying both domestic and bi-national commerce.Finally, foreign flag operators are those carrierswhose vessels are documented under the laws of acountry other than the United States or Canada.These carriers typically operate between systemports and overseas destinations.
Employment – Of the 226,833 jobs supported by activityon the Great Lakes-Seaway system, cargo moving onthe Canadian flag fleet supported 101,568 jobs(45 percent), while cargo moving on U.S. flag vesselssupported 107,612 jobs (47 percent). The remaining17,653 jobs (8 percent) were supported by cargomoving on foreign flag vessels.
Personal Income — For the system-wide personalincome total of US$14.1 billion (Cdn$14.5 billion),cargo moving on Canadian flag vessels supported35 percent of that income; cargo moving on U.S. flagvessels supported 55 percent; and cargo moving onforeign flag vessels supported 10 percent.
Exhibit III-1 Economic Impacts by Flag of Carriage — Regional Level
Canadian Flag U.S. Flag Foreign Flag Total
Jobs
Direct Jobs 48,660 37,220 7,043 92,923
Induced 24,189 35,772 6,044 66,005
Indirect 28,719 34,621 4,566 67,905
Total 101,568 107,612 17,653 226,833
Personal Income(1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $ US $ Cdn $
Direct $2,288,326 $2,356,976 $1,696,677 $1,747,577 $377,983 $389,322 $4,362,985 $4,493,875
Re-Spending/
LocalConsumption $1,309,804 $1,349,098 $4,750,354 $4,892,864 $793,025 $816,815 $6,853,182 $7,058,777
Indirect $1,286,225 $1,324,811 $1,419,128 $1,461,702 $192,707 $198,488 $2,898,060 $2,985,002
Total $4,884,354 $5,030,885 $7,866,158 $8,102,143 $1,363,714 $1,404,626 $14,114,227 $14,537,654
BusinessRevenue (1,000) $15,678,458 $16,148,812 $15,537,600 $16,003,728 $2,344,974 $2,415,323 $33,561,032 $34,567,863
Local Purchases(1,000) $3,323,626 $3,423,335 $2,685,125 $2,765,679 $404,992 $417,142 $6,413,744 $6,606,156
State/Provincialand Local Taxes(1,000) $617,015 $635,525 $763,841 $786,757 $149,777 $154,271 $1,530,634 $1,576,553
Federal Taxes
(1,000) $1,343,664 $1,383,974 $1,445,719 $1,489,090 $263,470 $271,374 $3,052,853 $3,144,439Note: Totals may not add due to rounding
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Executive Summary 9
Business Revenue — Cargo moving via Canadianflag vessels supported US$15.7 billion (Cdn$16.1billion) in direct business revenue, 47 percent of thetotal, while cargo moving on U.S.-flag vesselssupported US$15.5 billion (Cdn$16.0 billion),accounting for 46 percent of the business revenue.The cargo moving on foreign flag vessels accounted
for the balance.
Local Purchases — Cargo moving on Canadian flagvessels supported 52 percent of the total localpurchases made system-wide in 2010. Cargo movingon the U.S. flag fleet supported 42 percent, whileforeign flag vessel activity supported the balance.
Taxes — Cargo moving on Canadian flag vesselssupported 44 percent of the total tax impact andcargo moving on the U.S. flag vessels accounted
for 47 percent of the impact, while the cargo movingon foreign flag vessels supported the balance of thetax impact.
St. Lawrence Seaway Impacts (Chapter IV)
The St. Lawrence Seaway extends from Montreal toLake Erie and is composed of a series of 15 locks thatconnect the Great Lakes to the lower St. LawrenceRiver and the Atlantic Ocean. The Welland Canalsection consists of eight Canadian locks that enableships to pass between Lakes Erie and Ontario.
The Montreal-Lake Ontario (MLO) section of theSeaway consists of seven locks — five located inCanada and two in the United States. These locksenable ships to pass between Lake Ontario and thelower St. Lawrence River. During 2010, more than35 million metric tons of cargo passed through theSeaway’s infrastructure. This chapter describes theeconomic impacts of system traffic utilizing anysegment of the Seaway. This data is intended tobetter inform public policy decisions regardinginfrastructure investment, system management,
vessel regulation, etc.
Employment — Maritime commerce on theSt. Lawrence Seaway portion of the Great Lakes-Seaway system in 2010 impacted 86,006 U.S. andCanadian jobs, including 37,344 direct jobs . As aresult of local and regional purchases made by those37,344 individuals, an additional 21,830 induced jobs
were supported in the regional economy. Finally,
26,832 indirect jobs were supported by US$2.8 billion(Cdn$2.9 billion) in regional purchases by businessessupplying services at the marine terminals and ports.
Personal Income — Maritime commerce utilizing theSt. Lawrence Seaway in 2010 supported US$4.6 billion(Cdn$4.7 billion) in total personal wages and localconsumption expenditures. The 37,344 direct jobholders received US$1.78 billion (Cdn$1.83 billion)in wage income.
Business Revenue — In 2010, the marine cargo andvessel activity using the St. Lawrence Seawaygenerated US$12.3 billion (Cdn$12.7 billion) indirect business revenue.
Local Purchases — Businesses involved in maritimeactivity on the St. Lawrence Seaway spentUS$2.8 billion (Cdn$2.9 billion) on purchases intheir respective local economies.
Taxes — St. Lawrence Seaway commercial maritimeactivity generated US$1.7 billion (Cdn$1.7 billion)
in local, state/provincial and federal tax revenues.
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10 The Economic Impacts of the Great Lakes-St. Lawrence Seaway System
Impacts of New York Ballast Water Regulations (Chapter V)
This chapter describes the economic impact of allcommercial cargo moving through New York waters ofthe Great Lakes-Seaway system. This traffic includesthe cargo moving on New York sections of theSt. Lawrence River though the Montreal-Lake Ontario
(MLO) section of the St. Lawrence Seaway, as well ascargo moving to and from Buffalo, N.Y. (intra-lakecommerce) and not transiting any Seaway locks.
This analysis is meant to inform the public policy debatesurrounding New York State ballast water regulationson vessels transiting New York waters. In December2008, New York established state regulations governingthe discharge of ballast water from commercialvessels operating in New York’s jurisdiction. Theregulations seek to address the problem of aquaticnuisance species being introduced into New Yorkwaters via ships’ ballast water.
Under New York’s rules, by 2013, all vessels operatingin New York waters will be required to installenvironmental technology that can clean or treatballast water to meet a specific water quality standard.The State of New York’s water quality standard is100 times more stringent than international standards.The regulations apply to vessels that call on NewYork ports and vessels that transit New York waters
destined for ports in other states.
A July 2011 evaluation by the U.S. EnvironmentalProtection Agency (EPA) determined that technologydoes not exist to meet the water quality level stipulatedby New York. For this reason, the maritime industrybelieves these regulations to be unworkable and, ifleft unchanged, will cause economic harm when theycome into effect, resulting in complete cessation ofcommercial maritime commerce in New York waters.The economic impacts presented in this chapter
demonstrate the economic-opportunity cost of theproposed regulations on the U.S. and Canadianeconomies.
Exhibit IV-2 Economic Impacts of the St. Lawrence Seaway — Country Level
Impacts Canada United States Total
Jobs
Direct Jobs 29,512 7,832 37,344
Induced 13,310 8,520 21,830
Indirect 20,220 6,613 26,832
Total 63,041 22,965 86,006Personal Income (1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $
Direct $1,387,919 $1,429,557 $385,809 $397,383 $1,773,728 $1,826,940
Re-Spending/ Local Consumption $522,014 $537,675 $1,125,765 $1,159,538 $1,647,780 $1,697,213
Indirect $888,709 $915,370 $274,725 $282,967 $1,163,434 $1,198,337
Total $2,798,643 $2,882,602 $1,786,299 $1,839,888 $4,584,942 $4,722,490
Business Revenue (1,000) $9,522,050 $9,807,711 $2,797,763 $2,881,696 $12,319,813 $12,689,407
Local Purchases (1,000) $2,321,135 $2,390,769 $524,495 $540,230 $2,845,629 $2,930,998
State/Provincial andLocal Taxes (1,000) $323,447 $333,150 $177,427 $182,749 $500,873 $515,899
Federal Taxes (1,000) $862,260 $888,128 $321,534 $331,180 $1,183,794 $1,219,308
Note: Totals may not add due to rounding
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Executive Summary 11
Employment — In 2010, Great Lakes-Seaway systemmaritime commerce that transited New York watersimpacted 72,601 U.S. and Canadian jobs, including31,314 direct jobs . As a result of local and regionalpurchases made by those 31,314 individuals, anadditional 18,306 induced jobs were supported in theregional economy. Finally, 22,442 indirect jobs were
supported by US$2.4 billion (Cdn$2.5 billion) inregional purchases by businesses supplying servicesat the marine terminals and ports.
Personal Income — Cargo moving via New Yorkwaters of the Great Lakes-Seaway system supportedUS$3.8 billion (Cdn$3.9 billion) in total personalwages and local consumption expenditures in theregional economies of the U.S. and Canada. The31,314 direct jobholders received US$1.5 billion(Cdn$1.6 billion) in direct wage and salary income.
Business Revenue — In 2010, the marine cargoand vessel activity on the New York waters of theGreat Lakes-Seaway system generated a total ofUS$10.5 billion (Cdn$10.8 billion) in directbusiness revenue in Canada and the United States.
Local Purchases — Businesses involved in Great
Lakes-Seaway system maritime activity transitingNew York waters spent US$2.4 billion(Cdn$2.5 billion) on purchases in their respectivelocal economies.
Taxes — Great Lakes-Seaway system commercialmaritime activity moving on New York watersgenerated US$1.4 billion (Cdn$1.5 billion) in local,state/provincial and federal tax revenues.
Exhibit V-2 Economic Impacts of the Commerce Transiting New York Waters of the Great Lakes- Seaway System — Country Level
Impacts Canada United States Total
Jobs
Direct Jobs 25,360 5,954 31,314
Induced 11,477 6,829 18,306
Indirect 18,117 4,324 22,442
Total 54,954 17,108 72,061
Personal Income (1,000) US $ Cdn $ US $ Cdn $ US $ Cdn $
Direct $1,202,427 $1,238,500 $301,286 $310,325 $1,503,713 $1,548,824Re-Spending/ Local Consumption $448,315 $461,765 $898,078 $925,021 $1,346,393 $1,386,785
Indirect $797,643 $821,573 $179,162 $184,537 $976,806 $1,006,110
Total $2,448,385 $2,521,837 $1,378,526 $1,419,882 $3,826,912 $3,941,719
Business Revenue (1,000) $8,404,342 $8,656,472 $2,081,001 $2,143,431 $10,485,343 $10,799,904
Local Purchases (1,000) $2,090,243 $2,152,950 $349,540 $360,026 $2,439,782 $2,512,976
State/Provincial andLocal Taxes (1,000) $289,027 $297,697 $137,400 $141,522 $426,427 $439,219
Federal Taxes (1,000) $749,856 $772,351 $248,135 $255,579 $997,991 $1,027,930
Note: Totals may not add due to rounding
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12 The Economic Impacts of the Great Lakes-St. Lawrence Seaway System
Related User Impacts (Chapter VI)
This chapter presents information on related userimpacts, which measure jobs, income, output and taximpacts with shippers/consignees and supportingindustries that move cargo through the ports andmarine terminals on the Great Lakes-Seaway system.
These impacts are classified as “related” because thefirms using system ports and marine terminals tomove cargo can — and, in some cases, do — useother ports and marine terminals outside the GreatLakes-Seaway System. As a result, these impactscannot be counted as exclusively dependent upon themarine terminals in the system.
Employment — In addition to the 226,833 U.S. andCanadian jobs impacted by Great Lakes-Seawaysystem maritime commerce, there are an additional477,593 related user jobs, including 393,262 in the
United States and 84,331 in Canada . The majorityof the related user impacts occur in the U.S. as aresult of the iron ore and coal movements on theGreat Lakes.
Personal Income — In 2010, individuals employedby related users accounted for US$22.7 billion
(Cdn$23.4 billion) in total personal wages andlocal consumption expenditures.
Business Revenue — Related user business revenuetotaled US$115.5 billion (Cdn$119.0 billion) inCanada and the United States in 2010.
Taxes — The activity created in the related user sectorin 2010 generated US$7.1 billion (Cdn$7.4 billion)in tax revenue for federal, state/provincial, and localgovernments.
These summary findings, and the balance of the following report, highlight the significant contribution of maritime commerce on the Great Lakes-St. Lawrence Seaway System to the bi-national regional economy of the Great Lakes and through it, to the economy of North America as a whole.
Exhibit VI-1 Related User Impacts
User Impacts Canada United States Total
Jobs 84,331 393,262 477,593
US $ Cdn $ US $ Cdn $ US $ Cdn $
Personal Income (1,000) $4,552,340 $4,688,910 $18,179,620 $18,725,008 $22,731,960 $23,413,919
Business Revenue (1,000) $31,608,507 $32,556,763 $83,906,441 $86,423,634 $115,514,949 $118,980,397
State/Provincial andLocal Taxes (1,000) $543,053 $559,345 $1,853,928 $1,909,546 $2,396,981 $2,468,891
Federal Taxes (1,000) $1,382,022 $1,423,482 $3,272,332 $3,370,501 $4,654,353 $4,793,984Note: Totals may not add due to rounding
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